SEOUL // North Korea held a live-fire drill near its maritime border with South Korea on Tuesday, with Seoul vowing a “strong” response if any shells fall on its side of the disputed boundary.
A similar exercise a month ago resulted in the two rivals firing hundreds of artillery shells into each other’s territorial waters.
North Korea had given advance notice of the drill which began around 2.00pm 9am (UAE), the South Korean defence ministry said.
“Our military is fully prepared,” ministry spokesman Kim Min-Seok said.
“If any shell lands on our side of the border, South Korea will respond strongly.”
The Yonhap news agency reported that South Korean jet fighters had been scrambled to patrol the border area.
Fishing vessels had been warned off and local officials on the border islands of Yeonpyeong and Baengnyeong said residents were advised to leave their homes.
“They’ve been told to move into shelters,” a local official on Baengnyeong said, adding that the sound of artillery shelling could be heard in the distance.
North Korea carried out a similar drill on March 31 during which a number of shells dropped into South Korean waters, prompting South Korea to fire back.
The exchange was limited to non-targeted shelling into the sea, but fuelled tensions that had already risen after North Korea threatened to carry out a nuclear test.
Tuesday’s announcement followed analysis of recent satellite images suggesting the North was indeed preparing to conduct its fourth atomic detonation, with stepped-up activity detected at its main nuclear test site.
It also followed the visit to Seoul last week by US President Barack Obama, who angered Pyongyang by demanding that the North abandon its nuclear weapons programme and by threatening tougher sanctions if it went ahead with another test.
“North Korea’s continued pursuit of nuclear weapons is a path that leads only to more isolation,” Obama told American troops based in Seoul.
“It’s not a sign of strength. Anybody can make threats. Anyone can move an army. Anyone can show off a missile,” he said.
North Korea denounced Obama’s visit as provocative and said it had only reaffirmed Pyongyang’s policy of preparing to fight “a full-scale nuclear war”.
North Korea has conducted three nuclear tests, the most recent — and most powerful — in February last year.
The de-facto maritime boundary between the two Koreas — the Northern Limit Line — is not recognised by Pyongyang, which argues it was unilaterally drawn by the US-led United Nations forces after the 1950-53 Korean War.
Both sides complain of frequent incursions by the other and there were limited naval clashes in 1999, 2002 and 2009.
In November 2010, North Korea shelled Yeonpyeong island, killing four South Koreans and briefly triggering concerns of a full-scale conflict.
Border island residents have become used to the North’s behaviour and some brushed off Tuesday’s drill.
“I’m so sick of it,” said one inn owner on Baengnyeong island.
“The whole thing is just scaring my customers away. I’m more likely to die from business losses than an attack from the North,” she told AFP by telephone.
Inter-Korean ties had seemed to be enjoying a thaw earlier this year when the North — following rare, high-level official talks — hosted the first reunion for more than three years of families separated by the Korean War.
But tensions began to escalate after the South launched its annual joint military exercises with the United States in late February.
The North was also angered by a UN report detailing Pyongyang’s record of human rights abuses and by the UN Security Council’s criticism after it test-fired two medium-range missiles in March.
* Agence France-Presse
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Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
Gulf rugby
Who’s won what so far in 2018/19
Western Clubs Champions League: Bahrain
Dubai Rugby Sevens: Dubai Hurricanes
West Asia Premiership: Bahrain
What’s left
UAE Conference
March 22, play-offs:
Dubai Hurricanes II v Al Ain Amblers, Jebel Ali Dragons II v Dubai Tigers
March 29, final
UAE Premiership
March 22, play-offs:
Dubai Exiles v Jebel Ali Dragons, Abu Dhabi Harlequins v Dubai Hurricanes
March 29, final
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Scoreline
Abu Dhabi Harlequins 17
Jebel Ali Dragons 20
Harlequins Tries: Kinivilliame, Stevenson; Cons: Stevenson 2; Pen: Stevenson
Dragons Tries: Naisau, Fourie; Cons: Love 2; Pens: Love 2
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Strait of Hormuz
Fujairah is a crucial hub for fuel storage and is just outside the Strait of Hormuz, a vital shipping route linking Middle East oil producers to markets in Asia, Europe, North America and beyond.
The strait is 33 km wide at its narrowest point, but the shipping lane is just three km wide in either direction. Almost a fifth of oil consumed across the world passes through the strait.
Iran has repeatedly threatened to close the strait, a move that would risk inviting geopolitical and economic turmoil.
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